Tracy, California, September 19, 2025
News Summary
The Tracy City Council has approved Costco’s plans for two large warehouses near the city’s limits. The project, pending county approval, aims to create 400 construction jobs and 250 permanent positions, generating nearly $4 million in sales tax revenue for the city. The warehouses will operate on 100% renewable energy, showcasing Tracy’s growth in the warehouse sector, which is driven by its strategic location for logistics and distribution. The approval process for annexation may take 3 to 4 months, with construction expected to take about two years.
Tracy, California has officially approved Costco’s plans to build two large warehouses just outside the city limits, with the decision made by the Tracy City Council last week, pending county approval. The new facilities will be situated near the southeast corner of Schulte and Hansen roads and include a substantial 1.2 million square foot warehouse alongside another facility exceeding half a million square feet.
The construction of these warehouses is expected to create 400 jobs in the construction sector. Once the warehouses are operational, they are projected to generate approximately 250 permanent positions for Costco. In terms of economic impact, the project is estimated to yield nearly $4 million in additional sales tax revenue for Tracy, which could be allocated for parks and infrastructure improvements in the city.
The land designated for the new development is currently zoned for agricultural use, meaning that it requires county approval for annexation into Tracy’s city limits. San Joaquin County Supervisor Robert Rickman highlighted that the expansion of cities often entails the annexation of county land to facilitate development. The approval process for this land annexation could take between 3 to 4 months. If all goes smoothly, construction of the warehouses is expected to take about two years to complete.
Costco has indicated its commitment to sustainability by planning to ensure that the new warehouses will operate on 100% renewable energy. This project exemplifies a broader trend in Tracy, which has recently experienced significant growth in the warehouse and distribution sector. This surge can be attributed to Tracy’s strategic location near major highways and transportation hubs, positioning it as a favorable site for e-commerce and online shopping enterprises.
Tracy has undergone substantial transformation in recent years due to the influx of warehouses, reflecting the city’s adaptation to the increasing demand for logistics and distribution facilities emphasized by changes in consumer shopping habits. As the warehouses continue to emerge, they contribute to both job creation and potential economic benefits for the community.
Key Features of the Costco Warehouse Project
- Location: Southeast corner of Schulte and Hansen roads, Tracy, California
- Warehouse Sizes: One warehouse of 1.2 million square feet; another exceeding 500,000 square feet
- Expected Jobs: 400 construction jobs; 250 permanent Costco jobs
- Sales Tax Revenue: Approximately $4 million for Tracy
- Energy Operation: 100% renewable energy
- Current Zoning: Agricultural land requiring county annexation
- Approval Timeline: 3 to 4 months for annexation; 2 years for construction
Conclusion
The approval of Costco’s plans for two new warehouses represents a significant development for Tracy, California, aligning with the city’s ongoing growth and adaptability to the evolving landscape of commerce and distribution.
FAQ
Where will the Costco warehouses be located?
The proposed location is near the southeast corner of Schulte and Hansen roads in Tracy, California.
How many jobs will the construction of the warehouses create?
The construction of these warehouses is expected to create 400 construction jobs.
What is the expected permanent job creation from these warehouses?
Upon completion, approximately 250 permanent jobs will be created for Costco.
What is the estimated sales tax revenue from the project?
The project is estimated to generate nearly $4 million in additional sales tax revenue for Tracy.
How long is the approval process for the annexation of land?
The approval process for the land annexation could take 3 to 4 months.
Chart of Key Features
| Feature | Details |
|---|---|
| Location | Southeast corner of Schulte and Hansen roads, Tracy, California |
| Warehouse Sizes | 1.2 million square feet and over half a million square feet |
| Construction Jobs | 400 jobs |
| Permanent Jobs | Approx. 250 jobs |
| Sales Tax Revenue | Approximately $4 million |
| Energy Operation | 100% renewable energy |
| Approval Timeline | 3 to 4 months for annexation; 2 years for construction |
Deeper Dive: News & Info About This Topic
- CBS News: Tracy City Limits Expansion for Costco Warehouses
- Wikipedia: Tracy, California
- Modesto Bee: Tracy Business News
- Google Search: Costco warehouse Tracy California
- Tracy Press: Industrial Annexation Proposal
- Encyclopedia Britannica: Warehousing Industry
- CNBC: Amazon and Other Fulfillment Centers in Tracy
- WSJ: Warehouse Boom Fades in California
